Communications and Multimedia Minister Saifuddin Abdullah has again raised eyebrows with another ministerial order, this time allocating more telecommunication spectrum to Altel Communications.
The move courted attention both domestically and internationally in the telecommunications industry.
Light Reading, a New York-based firm that reports on the telecommunication industry, described the move as "sudden and unexplained".
RHB Research said the lack of transparency affirmed the previous regressive stance, in reference to an earlier ministerial order that had also generated controversy.
In June last year, Saifuddin issued a ministerial order awarding spectrums related to the implementation of 5G to five firms without an open tender. He backpedalled after an outcry.
The 5G spectrums are now expected to go to Digital Nasional Bhd, a government special purpose vehicle which will, in turn, tender them out to the respective telecommunication firms.
That model, which departs from the traditional method of allowing telecommunication firms to directly bid for the spectrums, was also a point of contention, with research firm Fitch Solutions warning of corruption risks.
In the latest ministerial order, Saifuddin awarded the 850MHz-885MHz and 925 MHz-930MHz spectrums to Altel Communications in the 900MHz band.
The award was first highlighted by The Star on June 14. The ministerial order was dated May 31.
Idle spectrums
The award was in addition to Altel Communications’ existing 2540MHz-2560MHz and 2660MHz-2680MHz bands which is double of what all other telecommunication firms have in the 2600MHz band.
Light Reading noted that this was despite Altel Communications not fully utilising them and has instead leased capacity from other telco firms for its mobile virtual network operator (MVNO) business.
“There is the curiosity of why Altel is being issued spectrum at all.
“In 2012, it was awarded 40MHz in the 2.6GHz band – twice as much as any other operator – yet that allocation has remained idle as it went on to build an MVNO business using leased capacity,” it said.
MVNO is a telco service provider that rides on the infrastructure of other telco companies.
Altel is a unit of Puncak Semangat Sdn Bhd which is owned by tycoon Syed Mokhtar Al-Bukhary.
The Star, quoting a research note to investors by RHB Research, stated: “The latest development may be interpreted by the market as backpedalling on the previous decision/outcome and regressive (no tender called), in our view.”
Parallel to the Altel award, Saifuddin also issued another ministerial order on the same day extending the existing spectrums owned by all telecommunication companies in the 2600MHz band by five years.
No new spectrums were allocated to the other telecommunication firms. - Mkini
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